AZZ Azcar Technologies

Stephen F. Pumple, CEO of AZCAR Technologies Incorporated (TSX VENTURE: AZZ) today announced first quarter revenue of C$13.3 million, an increase of C$1.2 million or 10 per cent over the prior year. As previously announced on May 28, 2010, in order to focus on its core business the Company closed down the operations of its Matchframe subsidiary. The Company incurred an impairment charge of $C3.0 million on the long-term assets of Matchframe.

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Consolidated Statement of Operations                   2010           2009
(CDN $000)                                      Three Months Ended Mar. 31
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(unaudited)    (unaudited)

Revenues                                             13,349         12,128
Cost of goods sold                                    9,426          9,617
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Gross Margin                                          3,923          2,511
Gross Margin %                                         29.4%          20.7%
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Operating expenses                                    4,227          3,648
Interest expense                                        133            (15)
Foreign exchange loss (gain)                            109             (9)
Stock-based compensation                                 17             16
Amortization                                            311            129
Impairment of customer lists                          2,014              -
Impairment of Matchframe fixed assets                   998              -
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7,809          3,769
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Income (loss) before income taxes                    (3,886)        (1,258)
% of revenues                                         (29.1%)        (10.4%)
Income tax expense (recovery)                             6            (55)
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Net Income (Loss)                                    (3,892)        (1,203)
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Earnings per share
Basic (cents)                                        (25.0)          (7.7)
Fully Diluted (cents)                                (25.0)          (7.7)
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Cash dividends per share (cents)                        0.0            0.0
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Operating expenses in 2010 increased by 16 per cent to $C4.2 million compared to $C3.6 million in the previous year. The increase in operating expenses is primarily due to the increase in our cost base associated with the addition of Matchframe ($1.8 million). Offsetting this increase, the Company, through cost containment measures and restructuring reduced its quarterly cost base year over year by $1.2 million.

The consolidated negative EBITDA for the quarter totalled $0.3 million. However, excluding one-time restructuring charges, the Company achieved break-even EBITDA for the quarter ending March 31, 2010.

The Company recorded a net loss of $3.9 million compared to a net loss of $1.2 million in the previous year. The increase in net loss was primarily the result of the continuing deterioration in market conditions worldwide, one-time severance charges and the charges associated with the impairment of Matchframe assets.

AZCAR is an independent technology integration company providing the broadcast and communications industries with value-driven solutions, consulting, engineering, systems design, integration, project management and the supply of related materials and equipment. The stock trades on the Toronto Venture Exchange under the symbol: AZZ.

Except for historical information, this news release may contain certain "forward looking statements". Forward looking statements are statements that are not historical facts and are subject to a variety of risks, uncertainties and other factors that may cause the actual results, level of activity and performance to be materially different from the Company's expectations and projections.

This review contains Management's discussion of AZCAR's operational results and financial condition, and should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2009, and the related "Management's Discussion and Analysis" (MD&A).

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts: AZCAR Technologies Incorporated Sean Fleming Chief Financial Officer (905) 470-2545 ext. 215 sean.fleming@azcar.com